EDI VAN

EDI VANs or Value Added Networks have evolved in the EDI community as a source of resolving the issues resulting from communicating with a number of different trading partners. Recent EDI experience shows that most companies consider the use of an EDI VAN when they reach an EDI volume of between 4 and 6 trading partners. Of course, nowadays EDI can be transacted using Internet technologies such as FTP, FTPS or AS2, in addition to and instead of EDI VANs. In essence, what an EDI VAN provides are the EDI communications skills, expertise and equipment necessary to communicate electronically with several parties. The basic function of any EDI VAN is to receive, store, and forward electronic messages. In this sense the EDI VAN serves as an electronic mailbox.

An EDI VAN, in some respects, performs a function very much like that performed by the US Postal Service. Like an EDI VAN, the Postal Service receives mail from senders, sorts the mail for the intended receiver, and delivers the mail to the receiver’s mailbox. EDI VANs function in the same way by providing an electronic mailbox for EDI messages.

An EDI VAN establishes an electronic mailbox for each trading partner. The sending partner transmits electronic messages, either by dialing using phone lines or accessing the Internet, to the EDI VAN. The EDI VAN receives the electronic messages and sorts them by receiver. The electronic messages are then sorted to the receivers’ mailboxes until they are called for by, or sent to, the receiver.

An electronic mailbox at an EDI VAN can be used whether you only send EDI messages, only receive EDI messages, or do both. Most EDI VANs allow you to “pickup” your incoming messages at the same time that you drop off your outgoing messages. In addtion, most EDI VANs allow for 24-hour per day, 7-day per week access to the electronic mailbox.

Using an EDI VAN in this manner eliminates a number of the problems associated with direct links with trading partners. Advantages received from the use of an EDI VAN as an electronic mailbox include:

• elimination of communication compatibility problems
• the ability to reach all trading partners with just one network connection
• the ability to receive audit information
• the existence of a buffer between your computer and that of your trading partner

Though EDI VANs have traditionally been central to EDI trading partner relationships, it is in some ways becoming yesterday’s technology. With the advent of the Internet, EDI VANs first started to allow FTP access and then with the advent of AS2, it became possible for hubs to connect directly to their trading partners using secure protocols and communication. As a result, EDI VANs have added a lot of services to increase their value proposition, but revenues in this sector of the EDI landscape has been significantly reduced. EDI Service

As a small business, your first exposure to EDI may have been through an EDI VAN.  Whatever your experience with EDI, an EDI VAN still could be an important part of working with EDI.  In the early days of EDI,  the EDI VAN was the only means of sending EDI data to your trading partners.  Of course, as the internet has changed EDI, it has also changed the role of the EDI VAN.  An EDI VAN today is more of an aggregator – especially for small businesses.  While a significant part of EDI business is sent using internet technologies such as AS2 and FTP, the EDI VAN still can play a role in helping small businesses communicate with their customers and vendors.

Do you need to work with an EDI VAN? The answer is – it depends.  There still are retailers that will only accept EDI through an EDI VAN.  For the vast majority, however, the choice of using an EDI VAN will be up to you.  The EDI VAN is an available resource, but the retailer will also work directly with you.  Should you work with an EDI VAN? Again, the answer is – it depends.  Specifically, an EDI VAN is advantageous if you are going to have limited use for EDI.  The EDI VAN already has established relationships with retailers; this factor may make testing and deployment significantly easier through the EDI VAN.  At the same time, using an EDI VAN can become expensive.  Since the EDI VAN monthly charges are based on how much data you send, the more EDI data you send, the more the EDI VAN will cost.

For the small business, using an EDI VAN or not using an EDI VAN is a question of strategic importance.  Specifically, if EDI is strategic to your organization, then using an EDI VAN may not be advantageous.  The more data you send through the EDI VAN, the more expensive the EDI VAN will be.  If, on the other hand, EDI is simply something you are required to do and you don’t plan on expanding your use of EDI, then using an EDI VAN may have significant benefits in cost savings and time savings.  The best part is that with EMANIO’s Trading Partner® software using an EDI VAN or not using an EDI VAN makes no difference! Our software works whether you use an EDI VAN or avoid the EDI VAN.